The CHF set up nicely for us after the European economic news was out of the way. It clearly had difficulty staying above yesterday’s high and began to drop. When price went below the Asian session low, approaching the session low, with the US traders about to start their day, we tightened the profit stop to lock in 25 pips of profit. US Unemployment and Core Durable goods numbers were both due out in 30 minutes too. As the US traders began, they abruptly reversed the market – which is very common and we are closed.
Always look left on the chart to see the relevant areas where price stalls or reverses. When I learned how to trade, my mentor used to say….”always look left to be right”. If you learn how to look at a chart the way the largest institutional traders do…you will be able to focus on the areas that they pay attention to, and be ready to enter or exit the market. There are a number of tricks to this, but with practice it becomes routine. If you can make good entries and remove the risk from your trades quickly… either when you can protect profit by moving your profit stop above/below structure or lock in some profit because price is showing signs of reversing…you can trade stress free.
Good luck with your trading!
There is no major economic news items remaining for this week.
Back tomorrow if we find a trade.